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A publication of the Office of the State Treasurer • Treasurer Ken Miller, Ph.D.
Economic Report TM
Oklahoma
News and analysis of Oklahoma’s economy
Inside
• Treasurer’s commentary:
Striking energy equilibrium
• No rainy day fund deposit this
year
• Fiscal year receipts up, but
June gross receipts drop below
prior year
• June unemployment rises, May
jobless rate revised upward
Contributor
Regina Birchum, Deputy
Treasurer for Policy/Chief of Staff
Editor
Tim Allen, Deputy Treasurer for
Communications
State Capitol Building, Room 217 • Oklahoma City, OK 73105 • (405) 521-3191 • www.treasurer.ok.gov
Volume 3, Issue 7 • July 31, 2013
SEE ENERGY PAGE 3
Oklahoma has a storied history of boom
and bust, with much of it tied to the oil
and gas industry. With one-third of the
state’s economy directly linked to the
energy industry, Oklahoma’s political
leaders have long sought to encourage
its expansion and protect its health.
One of the more important areas of
focus, especially over the past 20 years,
has been drilling incentives designed to
foster growth and ensure the continued
function of arguably the state’s most
vital economic engine.
The standard gross production tax is
seven percent of the sales price of oil
and natural gas. During the oil boom
of the 1980s, Oklahoma government
depended heavily on the gross
production tax. Tax policy changes
further grew dependence.
When the bust hit in 1982, state
government funding was decimated. For
the next several years, deep spending
cuts were made and income and sales
taxes were raised as the revenue pie was
rebalanced to reduce dependence on the
gross production tax.
Also as a result, the state constitution
was changed to establish a rainy day
fund, place strict limits on government
growth and spending, and to ensure
rational methods were used to estimate
revenues.
Landmark incentives
First enacted in 1963, Oklahoma’s gross
production tax statute has been amended
more than two dozen times, including
at least once each year since 1999. The
most significant changes were made in
1994 with passage of drilling incentives
Energy economics
0
500
1,000
1,500
2,000
2007 2008 2009 2010 2011 2012
660
1,975
254
547
Deep & Horizontal Well Completions
Source: Oklahoma Corporation Commission

A publication of the Office of the State Treasurer • Treasurer Ken Miller, Ph.D.
Economic Report TM
Oklahoma
News and analysis of Oklahoma’s economy
Inside
• Treasurer’s commentary:
Striking energy equilibrium
• No rainy day fund deposit this
year
• Fiscal year receipts up, but
June gross receipts drop below
prior year
• June unemployment rises, May
jobless rate revised upward
Contributor
Regina Birchum, Deputy
Treasurer for Policy/Chief of Staff
Editor
Tim Allen, Deputy Treasurer for
Communications
State Capitol Building, Room 217 • Oklahoma City, OK 73105 • (405) 521-3191 • www.treasurer.ok.gov
Volume 3, Issue 7 • July 31, 2013
SEE ENERGY PAGE 3
Oklahoma has a storied history of boom
and bust, with much of it tied to the oil
and gas industry. With one-third of the
state’s economy directly linked to the
energy industry, Oklahoma’s political
leaders have long sought to encourage
its expansion and protect its health.
One of the more important areas of
focus, especially over the past 20 years,
has been drilling incentives designed to
foster growth and ensure the continued
function of arguably the state’s most
vital economic engine.
The standard gross production tax is
seven percent of the sales price of oil
and natural gas. During the oil boom
of the 1980s, Oklahoma government
depended heavily on the gross
production tax. Tax policy changes
further grew dependence.
When the bust hit in 1982, state
government funding was decimated. For
the next several years, deep spending
cuts were made and income and sales
taxes were raised as the revenue pie was
rebalanced to reduce dependence on the
gross production tax.
Also as a result, the state constitution
was changed to establish a rainy day
fund, place strict limits on government
growth and spending, and to ensure
rational methods were used to estimate
revenues.
Landmark incentives
First enacted in 1963, Oklahoma’s gross
production tax statute has been amended
more than two dozen times, including
at least once each year since 1999. The
most significant changes were made in
1994 with passage of drilling incentives
Energy economics
0
500
1,000
1,500
2,000
2007 2008 2009 2010 2011 2012
660
1,975
254
547
Deep & Horizontal Well Completions
Source: Oklahoma Corporation Commission